Does E-commerce Drive Industrial Warehouse Demand?
One of the discernible effects of the pandemic has been a noticeable shift in consumer habits. Lockdowns allowed digital platforms to play a significant role in both B2B and B2C markets. This growth in e-commerce, in turn, led to an increase in the demand for industrial warehouses.
According to the report by the Mexican Association of Online Sales (AMVO), e-commerce in Mexico grew by 27% in 2021. Consequently, it accounted for 11.3% of total retail sales. With this, the country reestablished itself among the top five countries with the highest growth in online retail worldwide.
The Effects of E-commerce Growth
Focusing on Mexico, the surge in e-commerce had significant effects on the country’s economic growth, including creating more jobs. E-commerce has accelerated and boosted the Mexican economy in general.
The acceleration of commercial activity in various sectors such as food delivery, fashion, and the sale of electronic products has given a fresh impetus to the country’s commerce, especially in the capital. This growth is projected to continue, benefiting the industry as a whole.
On the other hand, one of the effects of the rise in e-commerce is the increased demand for industrial warehouses for rent. Currently, it is estimated that the city of Mexico alone accounts for 34% of online sales. This has created a need for spaces to carry out product storage and dispatch operations.
As a result, some development companies have begun exploring the conversion of old industrial warehouses into spaces adapted to their logistics operations and business operational requirements.
The Growth in Industrial Warehouse Demand
This landscape explains the changes that the industrial real estate sector has undergone because of digital commerce. According to figures from Solili, between January and December 2022, the demand for industrial warehouses in Mexico City amounted to 1.4 million square meters.
Naturally, this new demand presents a challenge for the sector. Consequently, various developers begun converting spaces that were becoming obsolete in terms of functionality, transforming them into industrial warehouses.
Furthermore, other projects that were already under construction have been expedited. As a result, by the end of November 2022, there were 640,000 square meters of industrial space in the process of being built. This represents a 25% increase compared to the previous year.
Join the Growth with Advance Real Estate
In 2023, it is expected that the metropolitan area of Mexico City will continue to develop its e-commerce sector and attract investments related to supply chain reconfiguration.
To meet the new market needs, Advance Real Estate provides companies with industrial warehouses for rent that align with the current state of e-commerce in Mexico.
Information sources
- advance-realestate.com/adblog/cual-es-el-estado-del-comercio-electronico-en-mexico
- www.eleconomista.com.mx/econohabitat/Espacios-para-atender-el-comercio-electronico-dinamizan-el-mercado-industrial-en-la-Ciudad-de-Mexico-20221230-0064.html
- www.solili.mx
- www.elfinanciero.com.mx/empresas/…/ventas-de-e-commerce-crecen-27-en-el-2021-suman-4013-mil-mdp
- www.amvo.org.mx
